If you donít have enough of a down payment saved you fall further behind by waiting.
Your solution may be a No Money Down Mortgage.
Even if you have saved for a down payment. Home buyers might want to use their savings for other uses like doing renovations or buying necessities for their new home.
Here is how it works:
The mortgage is 100% of the properties appraised value. You must have a clean credit history (No previous bankruptcies and any late payments in the last two years). You must have good job stability (two years in the same line of work is preferred). Thatís it.
No Money Down Mortgages, are financed the same way a traditional mortgage is. You will be required to purchase mortgage insurance through your lender. This coverage is provided by CMHC (Canada Mortgage and Housing Corp) and is required if you have a "high-ratio" mortgage.
Yes, there are banks and mortgage companies in Canada that will allow you to finance 100% of a property's value. Many lenders are now offering such loan programs. Here are just a few. Click on the bank logos for more information.
THE FIRST BIG BANK TO OFFER A "NO MONEY DOWN MORTGAGE"
ONTARIO EQUITY OFFERS A 100% MORTGAGE AS WELL AS A "SELF EMPLOYED" MORTGAGE
95% FINANCING WITH 5% CASH BACK = 100% FINANCING
What is CMHC Mortgage Loan Insurance
CMHCís Mortgage Loan Insurance is an insurance that covers your lenderís risks associated with financial loss that can occur when a homeowner defaults on their mortgage loan and in turn increases your access to mortgage financing and at the most competitive interest rates possible.